Breakpoint Schedule

Definition - What does Breakpoint Schedule mean?

Breakpoint Schedule offers mutual fund investors reduced sales charges for larger dollar investments.

Testopedia explains Breakpoint Schedule

Breakpoints are quantity discounts offered by mutual fund companies. The more shares a customer purchases in the same fund, or family of funds, the lower her sales charges will be.

Ex: $1-20,000 invested: 8.5% sales charge
$20,001-50,000 7% sales charge
$50,001-100,000 6% sales charge
$100,001 + 5% sales charge.

In order for a fund to be considered a full service mutual fund it must provide its customers with breakpoints.


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